Don't buy ERP

You will be promised golden mountains.
A whole year will torment your employees.
Then the staff put up with this outrage.
Gold will turn into dirt, and grandmas will be squeezed constantly.

History reference

(if then I knew about it - I would not make so many mistakes in my life)

The first ERP systems were not at all for production needs. Already worth the guard. ERP once out of retail. While in the world did not appear retailers and mega-moles, the owners themselves or the hired managers managed the shops. They put their experience and soul into it. Information about what is, what to buy, and when, was stored in their heads and notebooks. With the advent of large department stores and supermarkets, it became increasingly difficult to manage manually. In fact, the growth of trade enterprises has stopped.
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Cybernetics came to the rescue. This nascent industry has become a powerful driver for the rapid growth of retail chains. It was the software that began to monitor the availability of goods and the speed of its sales, to forecast its demand and to make procurement in advance without human intervention. Yes, purchases began to be made automatically. When the balance reaches a certain quantity of goods - the system automatically forms an order from a supplier approved in advance, at a previously agreed price. If there are several suppliers for a particular product and their prices are different, then the volume of the one who has the price is lower, then a little more, etc., is selected first. etc. A person could only find and choose the right product, enter into cunning contracts with suppliers, take the goods and place it on the shelves.

The success of ERP-systems in retail has generated a desire to move on - in the industry. They say it happened in the west. We sometimes get it too. But why and at what cost?

What is the beginning of what it is embarrassing to confess and then you have to pretend that everything works and very, very big money is spent for good reason (the latter can be used for auto-training)

It all starts very nicely. You come to impeccably dressed and well-trained messiahs of various system integrators and other apologists for the teachings of Ron Hubbard. They are all the same and they have one task - to sign an agreement. It is the contract to sign, and not to make you well.

After signing the contract, you will never see them, although they will say that it is they who have everything differently, and they will be project managers until its full implementation. Not. Analysis of existing business processes will be done by others. The technical task will be entrusted to the signature of the third, and the fourth will come to introduce. To sign acts that “everything is already working perfectly” is the fifth. They will shake grandmothers - millions of US dollars. All, except for one or two Russian, these are still content with little, but they have not implemented anything else except for accounting. No complaints about this product.

Remember, in order to sign a contract, they are ready for anything: bribing your CIO, deception of the director of economics and finance, juggling the facts about successful implementations and the results achieved. Your key specialists will be careful (and the best - openly) to express doubts about the possibility of implementation and the effect of it. Messiahs in this regard will tell you a secret: “You see, you are surrounded by idlers who are too lazy to tear off their backside and do something new, useful for your business, but we arrived just in time”.

Messiahs will catch you in the most unexpected places: at the airport, on vacation and at the most inconvenient time, until you surrender. Ask them: "what will the introduction of your system." From any get one answer: "reducing inventory balances and improving strategic planning and business manageability." What kind of remnants in FIG? What damn better planning and business manageability?

If your unfortunate subordinates have enough perseverance to introduce the whole EEU system, namely perseverance, because you lose the smart ones in the process, then the first thing you will see is an increase in the number, complaints of employees that they now have to stay up late to do what they used to do in 1 minute or not at all, because nobody needed it.

So, with those who need it, and who do not need it, we figured it out. If you are convinced, after all, and you have signed the contract, we will go further.

Analysis of existing business processes

Kids will come to you. Silly, but cute. So, why send smart and experienced ones to analyze existing business processes. They don’t need to think at all. They have instructions. The first is to schedule an interview with the leaders of the areas. The second is to conduct an interview (not reprimand) with them. The third is to blind all the interviews into one footwoman and slip the act onto the signature. Result? There is no result for you.

When planning a schedule, your leaders will dodge and wriggle between personal vacations, Christmas holidays, February 23, March 8, and other holy days for them to successfully wash off the seaside and summer cottage in the village. But the schedule will be made! Only send an interview to key users who do not need this ERP, because of the awesome employment of managers.

I almost forgot about the key users. This generally does not care where to get your 50 thousand rubles. Well, certainly not where for these 50 thousand rubles they also need to maintain the ERP system during off-hours, but at work. You are not mistaken. It is not she who will serve your business, but it will have to be served and the messiah will confirm it to you, if you ask them, and if you do not ask, they will be “silent, like a fish on ice.”

If you still have not signed the contract, but decided to read it to the end, then I give you an “Analysis of the existing business processes of your enterprise” with conclusions
(check, you will have exactly the same)

Analysis of existing business processes

I. There is no system of regulatory information. The nomenclature reference book is not systematized, it has duplicate entries, it is different in subsidiary companies. The list of analogues is missing. Attributes of the category of reserves and budget accounting are absent. Instructions for the formation of the names of the MTP nomenclature, works and services are missing (here the IT director will cry that he finally received confirmation from smart people that he spoke to everyone a hundred times, and no one listens to him).

In fact, the problem is solved elementarily, without ERP. It is only necessary to prohibit the accounting department from entering new nomenclatures when registering a parish. In a year or two, the balances on duplicates will be written off into production, and everything will be decided by itself. So what if the subsidiaries have different directories. It does not matter. In practice, cases of relocation (in fact, all the same sales) from one company to another have been three times in twenty years. Why make a fuss?

The attributes of the category of stocks and budget accounting for one item are different. For example, for investments and current activities, for emergency, current stock and safety stock. Accordingly, the nomenclature and should not have these attributes. The problem is contrived.

Regarding reference works and services - a separate topic. A reference book is a list of nomenclature that is used regularly, that is, written off, credited, purchased again, and so on. Attempts to create a directory of works and services - this is absurd. According to the reference books of the financial and economic service, everything is much simpler. The list in them is very stable. Once done and enough for years.

Ii. There is no system for rationing MTP expenditures (naive economists take heart, because when they studied, they were told that the USSR had a system of norms and norms of consumption, and their eyes would sparkle, that soon they will have too).

The task today is solvable only in terms of rationing raw materials, but this is simply done without ERP.

Regarding the MTP, the norms are absent as a class (the institutions that developed them have long since disappeared). MTP consumption standards are very difficult to calculate, but ERP is not to blame. In general, if economists themselves have not yet computed the norms and standards, then with the introduction of ERP they will not appear in their miraculous way.

By the way, to check the competence, ask them how the norms differ from the standards and listen to their lowing in response.

Iii. Planning of all budgets of the enterprise takes place in Excel (there will be a stain from tears, and if they report to you verbally, they will make a theatrical pause so that you shake your head and grin, looking at your careless subordinates).

Excel is not so bad! He is very good and every year better and better. You just need to learn to work in it. ERP to the simplicity and efficiency Excel as to China. In 90% of cases, standard Excel functions are sufficient.

Iv. Many data entry operations are duplicated, which causes excessive staffing (at this point, the HR director will say that he “has long been telling everyone what needs to be optimized, and no one has optimized, and now he is so happy about implementing ERP, so happy).

Maybe they are duplicated, but what will be the amazement of the HR director when he has to clone people. He will demand more and more new in order not to stop production due to ERP.

V. There is no system for maintenance and repair (MRO) (here the gray-haired chief mechanic of the Holding shed a tear, remembering how in 1985 he received on the head with a thick book of Alexander Yashur “System of Maintenance and Repair” from the shop mechanic).

The children and children who come to introduce to you were born in the 90s. The maximum that they know is how MRO is deciphered and what it needs to be implemented. And if the mechanic lived to a gray hair and never implemented the maintenance and repair system, he would never implement it, at least with ERP, even without it. By the way, that book is relevant.

The conclusion is likely to be:

The existing business process of the enterprise does not provide high-quality planning and provision of production activities, increase the risks of reducing the efficiency of growth of stocks, the growth of illiquid assets and reduce the efficiency of the enterprise as a whole.

In fact, all this is true and false at the same time. The truth is that not everything is really smooth, but you yourself know about it. The lie is that ERP implementation will fix everything. A lie is also needed for you to flare up and hit your fist on the table.

Your first desire is to overclock everyone. The second is to speed up the implementation of ERP. That was the calculation. But don't get excited. It is only water. You still have the opportunity to jump off. Salt is different.

Here it is a revelation. No Messiah will tell you about this, because there is no such thing in his ERP. Production is not a store.

ATTENTION! Items that will not be in the analysis of existing business processes

1. There is no effective procurement management system for MTR, works and services, namely:

1.1. In the process “MTP Nomenclature Handbook” there are no methods: initiating and creating a new nomenclature, checking modernity and technical soundness, pricing, determining the delivery time, choosing analogues from those available and others produced.

This is easily implemented by routine actions, without ERP. Here it is important to understand who in enterprises initiates the procurement of materials and equipment. This is done by those who then write them off into production (MOL-material-responsible persons of the units). So the MALLS (and not suppliers, economists or IT specialists) should initiate the creation of a new MTP nomenclature. Sami, at its discretion? By no means.

Each group of MOLS should have a guru from the Holding who should accept or reject. If the MOL wants to buy binoculars so as not to climb on the roof during a seasonal inspection of buildings and structures, this will be rejected, and if he initiated a whole list of consumables for the newest bulldozer (which will come next year and which has never been before) in accordance with the plan THEN, honor and praise him.

Provider - the most important element in the chain of coordination of the nomenclature. Its task is to determine prices, delivery times and offer possible analogues. Yes, it is at the stage of approval of the new nomenclature, and not at the stage of execution of the application next year. It's just everything. If the equipment is new, under warranty, then it is necessary to buy filters, as it is written in the passport, and if not, then you can pick up and coordinate with MOL quality analogues at a lower price. If there is an analogue in the directory, then the supplier must block the new nomenclature. From here begins the path of the warrior in the fight against illiquid assets.

The end point is put by a specialist who knows how to correctly construct a name (noun, adjective, brand, model, technical attributes). As you can see nothing complicated. A separate person is not particularly needed. From the experience, someone's relative will be in this “important” position and will kick the head. Therefore, the supplier can put the last point. In the end, he also buy later. In the process of agreeing a new nomenclature, the role of economists, financiers and other istov, no matter how they want - is absent.

1.2. In the process of “Procurement and write-off planning” there is no system excluding the growth of balances.

Elementary implemented regulatory activities, without ERP. To overcome the growth of residues, it is important to find the true culprit. This is not a supplier, not mechanics, not energy. These are economists. The main thing is to approve the procurement plan of the planned period by 10-15% less than the plan for writing off the MTP into production of the same period and agree on unplanned bids for the planned ones, that is, within the budget. As a result, an active selection of MTP from warehouses will begin. If the situation with the remains is catastrophic, then it is necessary to start from 20-30%. You can start doing this right now. The result of all quickly and pleasantly surprised.

1.3. In the process of “Evaluation and selection of suppliers and contractors” there is no transparent and open system for conducting electronic tenders and auctions.

In this issue, knowledge of the Messiah at the level of the plinth. At a number of the largest industrial holdings of the Russian Federation, this process is implemented on the platform of one of the best ERP. She is very proud of it. Lucky companies are also very proud of this. Only a guide. And the suppliers say the whole truth after a glass of drunk. Ask yourself. Such people applied to us for outsourcing of electronic competitive procedures. We certainly had. The result seemed to us not very - few participants. But they said that the result is excellent and will seek the leadership to work with us constantly. It turned out that the e-procurement system of one of the best ERPs is so poor that suppliers refuse to work because of ATTENTION !!! technical problems. Hangs, brakes, shutdowns! In the 21st century! We decided to check. The first impression of the interface is unbelievable brakes. You press the button, and the letter appears after 3 seconds. Youth remembered. Just like in 1995, Word 6.0 on a computer with a 40Mb screw.

Of course, the leadership is ashamed to admit that for this shit, millions are thrown out. Therefore, it is carefully hidden.

Regarding the implementation of the process of electronic competitive procurement of MTR, works and services, everything is not so simple. If you want to start getting results in a week, and not in two years (this is under an ideal set of circumstances), then you cannot do without outsourcing. How deep the outsourcing you choose to begin with is not important, it’s important that you come to the real professionals who wrote this story or at least their imitators who read it.

1.4. In the process “Contractual work” there is no systematic approach, which excludes the conclusion of transactions without conducting the previous process.

It is implemented by routine actions and electronic document circulation, without ERP. Easier does not happen. Sign the Order “On prohibiting the conclusion of transactions for the purchase of materials and equipment, works and services without conducting electronic competitive procedures”. The date of commencement of the order in three months. For three months, you can organize all related processes. Unless of course you do not stint on a competent professional who has already done it somewhere, and not just bought an MBA. It is useless to force one. Waste material. After all, they have not done it for years of work with you.

1.5. In the process of “Payment to counterparties”, there are no instruments to substantiate payments that ensure strict observance of the deadlines, taking into account the need for their prolongation in proportion to the violation of the delivery dates and the performance of work, and the provision of services by the Counterparties.

It is implemented by routine actions and electronic document circulation, without ERP. Very interesting topic. For example, the supplier delayed delivery by 14 days. Deferred payment 30 days. 30 days after delivery, the supplier drags the documents for payment. Sfigali spree? Circumstances have changed. Delay Now 44 days! If there would be a 50% prepayment, then a careless supplier would receive grandmother after 58 days. In our practice there was a case when the delay was more than a year. And you will not carp if you competently do everything. About this in the next paragraph.

1.6. The process "Pre-claim work" is completely absent.

Implemented by routine actions, without ERP. The goal is to put the supplier who violated the delivery time before the choice: to reduce the price or increase the delay in payment, in proportion to the violation. That is, to fully obtain material satisfaction in the amount of penalties for late delivery without tedious claim work. Works with a bang! Providers will cope with this work without lawyers at all. Aerobatics.

1.7. The process of "Acceptance of MTP, works and services" is not associated with the processes of "Payment to contractors" and "Pre-claim work" and does not contain tools for collecting primary documents for subsequent VAT refund.

Implemented by routine actions, without ERP. The theme is eternal. We will accept, horribly, pay, then we find out that there are problems with the bundle, documents for VAT, etc. etc. It is solved in close cooperation with the following item.

1.8. The process of “storage and security of the MTR” does not contain tools that ensure the full financial responsibility of the security organization for the safety of the assigned MTP.

Implemented by routine actions, without ERP. This is one of our know-how. Even your security director will say that the security company is not fully liable for materials and equipment in the warehouse. Now, if they transfer under the protection of the inventory, then another thing. However, the solution is and it is reinforced concrete.

1.9. The process “Operation of equipment during the warranty period” is completely absent. Implemented by routine actions, without ERP.

This is about the fact that the mechanic took the gearbox from the warehouse and orders the gears after 6 months. And where is the debriefing? The guarantee is not over. Houses all come differently. Find out: the cat has done in the TV or factory marriage. And judged and won. But the production is still not his - someone else.

The introduction of these regulations will allow in the shortest possible time to achieve a significant reduction: the cost of current and investment activities, MTP balances and the cost of credit resources. In short, will increase your personal profit. Actually, for the sake of what you have all muddied. I remind you! They will not offer it to you. This is not their business.

So who are they after that?

I admit, these comrades know how to lull anyone. They are taught this cool. So do not be surprised if you go further. But, taking the next step, you will not stop, as the introduction actually leaves the candy-bouquet bouquet, the presentation period during the establishment of long-term sexual relations, which will end in marriage and disappointment. But by that time everyone will get used to it, and will silently execute perverted business processes to achieve long-forgotten goals.

Development of technical specifications

You guys will come to you. A little bit older. With beards. Already have somewhere, something povnedryat. Well, not exactly the same company as you. Well, almost the same. For example, you extract and process coal, and those who have implemented ERP-systems in a drop-down pharmacy chain will come to you. They will assure that they have almost the same thing there, they just need to “finish” a little. Ha! But more about that later.

These children have instructions too: do not show finished projects, offer ready-made blocks and ask how the customer would like to change them. Remember, I said that the result of the analysis is not provided. So the guys on the new trample on managers and key users. Everybody will question. How does it work for you? How does it work? How do you plan? How do you buy? How do you come? We do not know how supply works. Tell us please! That is, yesterday, the previous kids said that everything is bad for you, and today's guys are developing TK to automate what is there! Here such perditonokl turns out!

At first, all employees willingly tell everything, share their own work and methods. Then they begin to see clearly. After all, everything they ask, they should know better than us !!! What do they want to automate what we do without them? Why did they come? Study? They are also stupid! And we thought to teach us, do better and implement. But you will not know about it. Wave baseman will not reach you.

With a grief in half, TK will be developed, but with its agreement and approval, the incident will come out. Three or four months the process will be delayed. Here be afraid of the one who will take responsibility and approve the TK without all approvals. As a rule, this is your project manager. This is not a random person. This is a paid man. His task is to quickly begin to milk you and cut your loot.

Project implementation

The implementation is the calm before the storm. New guys will come - programmers. Very smart and mysterious. They will not be seen and heard. They will program something without understanding what they are doing it for. As a result, something will appear and testing will begin.

Testing

Some programmers will remain, and some TK developers will join them. Together they will develop a test plan, and all your employees will again dodge and tack. So that they are not distracted by all sorts of crap. It turns out that TK and the reality is somewhat different. More precisely, it is so different that you need to enter the crisis management process.

And then the implementers will remember about you (in fact, this is part of their plan), because neither they, nor your employees, who are deeply stuck in the project, will not move further without your magic lyuly. Thus, the teachings of Ron Hubbard will unite yesterday's enemies: employees of the Contractor and employees of the Customer in the fight against you. What will come of it? It turns out that they will win you. Some will agree that all is well, and the second will agree that all is well. And as a result, you will be satisfied with your ability to resolve the situation.

Pilot operation

The last days of the normal operation of your enterprise. Yet they thought that someone else would come up with something for them. And you turn it on - it does not work. Does not work in every place and in general. Starts to work in one - collapses in another. The perpetrators are appointed instantly. These are end users. They are not able, not trained, do not want. They understand better than anyone that this fucking ERP did not result in anything but an increase in their work.

Why all the automation that makes work unbearable. Automation should increase productivity. Why automate what is easier to do without automation? This is the voice of the people.And he is prophetic, but no one will hear him. Slowly they will accept additional employees who will spend a day hrenachit applications for the need for the system, although earlier in Excel and it took one hour. Then these applications will be formally coordinated electronically for a week, although earlier this was done in a day and also formally. Then the supplier will try to split the requests in the system into lots. Then urgent applications will come to him, and he will spit on everything so as not to stop the mine. The director of the mine does not care about ERP.

As you have noticed, the project has shifted to the level of end users, the very workers who love their company. And they will come up with something. From the skin out, but the mine will work, but not thanks to the ERP-system, but in spite of. Your project manager will quietly increase project funding. The director of economics and finance will quietly provide this funding. This is not their money, but strangers.

results

Results of implementation. They will never be, because no original, innovative ideas and time-tested practices are involved in the project. Why?If they were implemented on a regulatory basis, then they could be partially shifted to ERP. And if there were none, then no ERP will help this.